AT&T (T) adjusts its long-term outlook

2024 Outlook

For the full-year, AT&T expects:

Wireless service revenue growth in the 3% range.
Broadband revenue growth of 7%+.
Adjusted EBITDA* growth in the 3% range.
Capital investment* at the high-end of the $21 to $22 billion range.
Free cash flow* in the $17 to $18 billion range, tracking toward the midpoint of this range; excluding approximately $2.5 billion of after-tax cash payments from DIRECTV, free cash flow in the $15 billion range.
Adjusted EPS* of $2.20 to $2.25, reflecting an increase from the previously provided $2.15 to $2.25 range. This includes an expected adjusted equity in net income from DIRECTV of approximately $0.30 per share post-tax. When excluding this, the Company expects adjusted EPS in the $1.90 to $1.95 range.

Long-Term Outlook

AT&T expects to achieve the following 2025 and long-term financial targets through 2027. Beginning in the first quarter of 2025, and as a result of the pending disposition of our DIRECTV equity method investment, the Company plans to report adjusted EPS and free cash flow excluding earnings and cash flows related to DIRECTV. The Company continues to expect the sale of its entire 70% stake in DIRECTV to TPG to close in mid-2025. For comparability to these targets, the Company has provided a recast of historical results for these two financial measures in its Form 8-K dated December 3, 2024.

Consolidated service revenue growth in the low-single-digit range annually from 2025-2027.

Mobility service revenue growth in the 2% to 3% range annually.
Consumer fiber broadband revenue growth in the mid-teens annually.

Adjusted EBITDA* growth of 3% or better annually from 2025-2027.

Mobility EBITDA* growth in the 3% to 4% range annually.
Consumer Wireline EBITDA* grows at a double-digit compounded annual growth rate (CAGR) through 2027.
Business Wireline EBITDA* declines at a low-double-digit CAGR through 2027; Business Solutions EBITDA* approaching stabilization by the end of 2027.

Capital investment* in the $22 billion range annually from 2025-2027.
Free cash flow*, excluding DIRECTV, of $16 billion+ in 2025, with annual growth of approximately $1 billion, resulting in free cash flow* of $18 billion+ in 2027.

In addition, AT&T expects to receive $5.4 billion of after-tax cash payments in 2025 and $0.5 billion in 2029 related to the sale of the DIRECTV investment.

Adjusted EPS*, excluding DIRECTV, of $1.97 to $2.07 in 2025, accelerating to double-digit percentage growth in 2027.
$3 billion+ in run-rate cost savings by the end of 2027, inclusive of the Company's target of achieving $2 billion+ in run-rate cost savings by mid-2026.

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